GERMAN TAXATION

Evening Post, Volume CVII, Issue 12, 15 January 1929, Page 10

GERMAN TAXATION

SUBSTANTIAL INCREASES

GROWING OPPOSITION

United. Tress Association—

■l!y Electric' Tele-

graph-Copyright.

(Received loth January, 2.30 p.m.)

BERLIN, 14th January.

The Cabinet is considering llerr I-lil-fcrding's proposals to cover the Budget deficit of 500,000,000 marks, partly due to the increased reparations payment of 300,000,000 marks. Herr Hilfcrding,,,plans to increase the beer tax to the extent of 105,000,000, by 00,000,----000, the capital tax by 101,000,000, the succession duty by 20,000,000. and the Post Office contribution by 26,000,000. He proposes to hold back payments to the States and Communes to the extent of 120,000,000 marks.

Most of the proposals meet with serious opposition. The Bavarian People's Party threatens to withdraw its representatives from the Cabinet if the beer tax is increased. The States are opposing the withholding of therevenues, though Mr. Parker Gilbert, Agent-General for Reparations under the Dawes Plan, criticised the present method of assigning them. Cabinet is expected to spend a week in discussing the means of a compromise. The- many-sided opposition criticism has already made the increased taxation lead the outside world to overestimate Germany's capacity to pay reparations.